The brothers were family-oriented business. They didn`t want to expand, they wanted to focus on the quality of the food first. Ray was a predator, he didn`t care about the business, he just wanted to make money, grow it rapidly and get instantly rich.
It`s a personal choice to sell. From my perspective, it is okay if you play your cards right. If they had nailed the royalty percentage written in the contract, it would have been an amazing deal. Imagine doing whatever you desire in your life and money just knocks on your door. It would`ve made them extremely wealthy without any efforts.I don`t think Ray, gave them the best possible deal. They have never received the royalty in perpetuity, and they never even gotten the credit for creating the restaurant.
They were making money because of the speed system, the brothers developed. The cost cutting solutions they have found, such as getting rid of silverware, dishes, jukebox. By changing the system to walk-in restaurant, they were also able to cut expenses with salaries.
Harry Sonneborn, who told Ray that it`s not about the hamburgers, it`s about real estate, changed his life. Kroc was making money out of the real estate model. He was purchasing and leasing the land to new franchisees. Ray was a tough and ruthless guy; he saw an opportunity and he grabbed it.
Yes, it did, even the first time I’ve watched it, busines wise. Now it just confirmed my opinion. I was so surprised by all the dirty tricks and malicious games, Kroc used in order to succeed. But let`s not forget, this is not a documentary… I am pretty sure some scenes were overexaggerated. However, one lesson learned – never close a deal on a handshake and trusting unconditionally.